training providers & marketers...resolving disputes (vet fee-help)• after the census date, if...

Training Providers & Marketers

Stephen Bailey

Project Officer | National ProjectsCompliance & Enforcementnationalprojectsnswft@finance.nsw.gov.au 02 9895 0515www.fairtrading.nsw.gov.au

Australian Consumer Law (ACL)

• National law for consumer transactions

• Misleading and deceptive conduct

• Unconscionable conduct

• Unfair contract terms

• Unsolicited consumer agreements - 10 business day cooling off

- 6 months if information not provided to consumer

• Consumer guarantees (refunds, redress)

Education & Training Complaints

• Increasing complaint numbers (all numbers are for previous 12 month period)

• High average value – over $4,500 in NSW

1314

15241618

353

428 490 555 595

0

500

1000

1500

2000

31 Dec 11 30 Jun 12 31 Dec 12 30 Jun 13 31 Dec 13 30 Jun 14

National

NSW

Consumers being targeted

Culturally and linguistically diverse

Indigenous

People with a Disability

Elderly

Young

Low -income

Low -literacy

Conduct of Concern

• Vocational education & training (VET) sector

• Unsolicited approaches, local people paid to market

• Promised incentives: cash, iPads, laptops

• Misleading info about VET FEE-HELP loans to fund

courses: ‘free’, ‘Government funded’

• Misleading info about the course: student ability t o

complete; upselling to diploma; career prospects

• Not providing paperwork or cancellation details

Example – Metropolitan Sydney

• Consumers: elderly, Chinese community

• Marketing: family friend (paid), cash/laptops

• Course: Diploma in Salon Management

• $25k VET FEE-HELP loans not disclosed

• Provided no paperwork

• Refusal to cancel enrolment and loans

Example – Regional NSW

• Consumers: indigenous & low -literacy

• Marketing: local person (paid), cash/laptops

• Course: online Diploma Business/Management

(some consumers signed to multiple diplomas and

providers at the same time)

• $20k VET FEE-HELP loans not explained

• Provided no paperwork

• Consumers did not know how to cancel

What is Fair Trading doing?

Complaints & Enquiries

Education

Compliance & Enforcement

Working with other agencies and providers

Complaints & Enquiries

• Providing information and options to consumers

• Assisting to resolve consumer complaints

• Referring consumers to other relevant agencies

Education

• Online: website information and fact sheet

• Online: Facebook and Twitter

• Kit: Poster, DL card (translated) and post cards

• Presentations to consumers, industry and service

providers

• Public warnings, media releases and interviews

Compliance & Enforcement

• Investigating serious conduct

- Can jointly investigate with other regulators

- Criminal or civil proceedings in Court –

injunctions, penalties to $1.1million, damages

- Court-enforceable undertakings

- Requires evidence & witnesses

• Proactive investigations

- Marketplace surveillance

- Substantiation notices seeking proof of claims

- Checking contracts for unfair terms

Working with other agencies

• Working with ACL regulators (compliance/education)

• Accepting complaints on behalf of clients

• Sharing educational material and strategies for

resolving disputes

• Providing guidance to help clients identify non-

compliant trading providers, marketers and conduct

• Liaising with, and referrals to ASQA and

Commonwealth Department of Education and

Training (VET FEE-HELP)

What can you do?

• Read Fair Trading’s educational material

• Talk with your clients & communities

• Assist clients to resolve their complaints with

training providers

• Assist clients to lodge complaints with Fair Tradin g

(or information to assist with compliance work)

• Tell Fair Trading about people marketing training

using illegal or unethical techniques

Resolving disputes (not VET FEE -HELP)

• Check contracts for cooling off periods, special

circumstances clauses and cancellation fees

• Confirm cooling off periods for unsolicited

consumer agreements under the ACL

• Complain in writing to the training provider

- cite any misleading or deceptive conduct

- seek cancellation without penalty during cooling

off period, or other outcome

Resolving disputes (not VET FEE -HELP)

• Complain to NSW Fair Trading on 13 32 20 or at

www.fairtrading.nsw.gov.au

• Apply to NSW Civil & Administrative Tribunal (NCAT)

Resolving disputes (VET FEE-HELP)

• Specific process for VET FEE-HELP loans/courses

• Check paperwork or the training provider’s website

to determine the ‘census date’ (cooling off period)

• Before the census date:- Cancel in writing (no penalty, no loan);

- Detail any misleading conduct

- Ask for marketer’s details (provide to Fair Trading )

Resolving disputes (VET FEE-HELP)

• After the census date, if misleading or deceptive

marketing about the course or VET FEE-HELP loan:- Write to the training provider, detailing misleadin g conduct

- Seek cancellation of the course enrolment and loan

- Ask for marketer’s details (provide to Fair Trading )

• After the census date, cancel unfinished subjects i f

there are ‘special circumstances’:- Write to training provider to cancel enrolment & lo an

- If declined, request internal review from training provider

- External review at Administrative Appeals Tribunal

- If training provider ceased training > Dept of Educa tion

Questions & Discussion

Reminder

• Read and distribute the educational material

• Share information via newsletters and social media

• Talk to your clients and communities and help them

lodge complaints

• For the next few weeks, ring Fair Trading to report

marketers of training:- 13 32 20

- Indigenous consumers 1800 500 330

- language assistance 13 14 50